TEXAS LIFE AND HEALTH INSURANCE PRACTICE TEST

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TEXAS LIFE AND HEALTH INSURANCE PRACTICE TEST

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of these are NOT an example of a Nonforfeiture option?

Answer:

Life Income Question 2: Under the Texas code, the MAXIMUM for which a spouse may be insured in a

company group life program with a $50,000 death benefit is:

Answer:

25,000 (or 1/2 of the death benefit) Question 3: When an insurance application is taken by a producer, which of these statements is true?

Answer:

Any changes made on the application require the applicant's initials Question 4: What is the consideration given by an insurer in the Consideration clause of a life policy?

Answer:

Promise to pay a death benefit to a named beneficiary

Question 5: In an individual retirement account (IRA), rollover contributions are..?

Answer:

not limited by dollar amount

Question 6: An agent whose license has been revoked is required to..?

Answer:

wait at least five years before applying for a new license Question 7: When is the face amount paid under a Joint Life and Survivor policy?

Answer:

upon death of the last insured Question 8: M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for?

Answer:

Determined by the terms of the policy Question 9: In Texas, a domestic insurance company is defined as a company that..?

Answer:

is incorporated and formed in Texas

Question 10: What is the underlying concept regarding level premiums?

Answer:

The early years are charged more than what is needed Question 11: An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?

Answer:

Loss of eyesight due to an accidental injury Question 12: According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?

Answer:

31 days

Question 13: Deductibles are used in health policies to lower

Answer:

overuse of medical services Question 14: Which of the following statements about the classification of applicants is

INCORRECT?

Answer:

Substandard applicants are never declined by underwriters Question 15: Which health policy clause specifies the amount of benefits to be paid?

Answer:

insuring Question 16: The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the

Answer:

insuring clause Question 17: Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance company for NO LONGER than how many months?

Answer:

• mo.

Question 18: Group life policies MUST include all of the following provisions EXCEPT

Answer:

Right to Loan Proceeds Question 19: What does the insuring agreement in a Life insurance contract establish?

Answer:

An insurer's basic promise Question 20: A medical care provider which typically delivers health services at its own local medical facility is known as a

Answer:

HMO

Question 21: A certificate of authority does which of the following?

Answer:

Permits an insurance company to transact business in Texas Question 22: The Commissioner of Insurance has the power and duty to take all of the following actions EXCEPT

Answer:

activate insurance companies' financial reserves

Question 23: Who can purchase a plan through the Marketplace?

Answer:

Any legal resident except those incarcerated Question 24: The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the..?

Answer:

Initial deductible Question 25: Which of these is NOT considered to be a right given to a policyowner?

Answer:

Modify a provision in the insurance contract Question 26: Which of the following circumstances would cause a Medicare Supplement policy to be cancelled?

Answer:

The insured fails to pay the premium Question 27: The individual most likely to buy a Medicare Supplement policy would be a(n)

Answer:

68-year old male covered by Medicare Question 28: A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?

Answer:

Waiver of Premiums